NEWS – April 2008
- DoT allows telcos to share active infrastructure to cut costs
Financial Express, April 02, 2008 - Oil regulator lays down criteria for city gas projects
Financial Express, April 02, 2008 - Power capacity addition falls short of target, again
Business Standard, April 3, 2008 - Broadcasting sector divided over foreign investment norms review
The Business Line, April 03, 2008 - Turbulence at home: Jet to up foreign flights
Business Standard, April 03, 2008 - Workers want ports to do own dredging operations
The Business Line, April 04, 2008 - Infrastructure sector posts 8.7% growth in Feb
The Business Line, April 04, 2008 - Mobile and fixed phone substitutability — why does it matter for India?
The Business Line, April 04, 2008 - PMO stamps out DoP move to regulate courier charges
The Times of India, April 4, 2008 - No Cabinet approval for Greenfield airports within 150 km radius
Business Standard, April 6, 2008 - New telecom licences ring in acute talent crunch
Business Standard, April 07, 2008 - Competition panel seeks more teeth to help tame inflation
Financial Express, April 08, 2008 - Well-laid norms sought for new airport policy
Financial Express, April 12, 2008 - Industry keenly awaits next gas price hearing
Business Standard, April 13, 2008 - Centre to act tough on cartelisation in steel: Kamal Nath
The Hindu, April 13, 2008 - Building contractors say Govt formula for price escalation inadequate
The Business Line, April 14, 2008 - Managing steel prices down without outright controls
Financial Express, April 14, 2008 - Trai inquiry into Virgin affair unfair: Tata Tele
Business Standard, April 14, 2008 - ‘Govt’s inflation policies likely to backfire’
Financial Express, April 15, 2008 - CCI to avoid overlapping with other regulators: Govt
The Economic Times, April 15, 2008 - Cement, steel firms acting like cartels: FM
Financial Express, April 16, 2008 - Railways open gate for private players in wagon biz
Financial Express, April 17, 2008 - No evidence of cartelisation but govt monitoring steel prices
Financial Express, April 18, 2008 - Tyre & steel cos face probe for cartel bid
The Economic Times, April 18, 2008 - Steel Ministry says no sign of cartelisation
Financial Express, April 18, 2008 - ‘Operators don’t need rural subsidy anymore, so why USO fund’
Financial Express, April 19, 2008 - Realty players accuse steel, cement cos of ‘cartelisation’
The Economic Times, April 20, 2008 - UP govt plans regulator for transport sector
Business Standard, April 21, 2008 - Fixed-line licence fee waived
Financial Express, April 25, 2008 - ‘Hike cap on foreign investment in cable TV network, news channels’
The Business Line, April 26, 2008 - Lock-in period only for telecom cos’ mergers: DoT
The Business Line, April 27, 2008 - Most states yet to formulate plan for rural electrification
Financial Express, April 28, 2008 - Changes likely in depreciation norms for infrastructure projects
The Business Line, April 30, 2008
DoT allows telcos to share active infrastructure to cut costs
Financial Express, Wednesday, April 02, 2008
The department of telecommunications (DoT) on Tuesday allowed sharing of active infrastructure by telecom service providers. The move would enable the operators to cut costs in network roll out and pass on the savings to consumers by way of cheaper tariffs. Issuing the guidelines on infrastructure sharing, DoT said that, “sharing of active infrastructure amongst service providers based on the mutual agreements entered amongst them is permitted. Active infrastructure sharing will be limited to antenna, feeder cable, Node B, Radio Access Network (RAN) and transmission system only. Sharing of the allocated spectrum will not be permitted.”
Oil regulator lays down criteria for city gas projects
Financial Express, Wednesday, April 02, 2008
Oil regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has laid down the criteria for Companies to bid for retailing CNG to vehicles and gas to households in cities but industry watchers say the parameters defined do not bear consumer interest in mind. The PNGRB, in a press release, on Tuesday said city gas distribution projects in some 250 cities will be awarded on the basis of network tariff, CNG compression charge, length of pipeline proposed to be laid and the number of households to be covered.
Power capacity addition falls short of target, again
Business Standard, Thursday, April 3, 2008
On the first day of the new financial year, there was a sense of déjà vu in the power sector. As has been the case for the last many years, the capacity addition during the year, of 9,263 mw, is a little over half the target of about 17,000 Mw. And like the previous years, power ministry officials blamed delays in equipment supply. This is even lower than the 10,000 mw announced by Finance Minister P Chidambaram in his Budget speech in February 2008.
Broadcasting sector divided over foreign investment norms review
The Business Line, Thursday, April 03, 2008
The broadcasting industry is divided over the Telecom Regulatory Authority of India’s proposal to review foreign investment norms in the sector. While Bharti, which is all set to launch its own DTH service soon, is in favour of raising limits, Big TV, the Reliance ADAG’s DTH business, wants all foreign investment limits capped at 49 per cent. TRAI’s exercise is aimed at bringing the foreign investment limits in certain segments of the broadcasting sector at par with those in the telecom sector.
Turbulence at home: Jet to up foreign flights
Business Standard, Thursday, April 03, 2008
Private carrier Jet Airways is expected to further consolidate its international operations into major revenue grosser in FY09, to overcome the growing turbulence in the domestic sector. The general economic scenario does not bode well for capacity expansion on domestic routes, with some of these struggling on account of overcapacity, and only yesterday some airlines were pushed to hike fares to make up for higher aviation turbine fuel prices.
Workers want ports to do own dredging operations
The Business Line, Friday, April 04, 2008
The All-India Port and Dock Workers Federation has urged the Shipping Ministry to take steps to permit ports to carry out their own dredging operations by inviting competitive tenders and involving all interested parties. In a letter to the Secretary, Ministry of Shipping, the All India Port and Dock Workers Federation General Secretary, Mr P.M. Mohammed Haneef, pointed out that maintenance dredging cost was one of the major expenditures of the ports and the expenses incurred by them to carry out the work through contract has increased tremendously.
Infrastructure sector posts 8.7% growth in Feb
The Business Line, Friday, April 04, 2008
High growth in the production of coal, power and cement pulled up the Index of Industrial Production (IIP) for infrastructure to 8.7 per cent in February 2008 as against 7.6 per cent in February 2007, reviving hopes that industrial production would speed up further in the coming months
Mobile and fixed phone substitutability — why does it matter for India?
The Business Line, Friday, April 04, 2008
All over the world, the growth of mobile phones has impacted the subscriber base of fixed phones. India is no exception. That an increasing number of fixed phone lines are being surrendered each year is relevant to framing current telecom subsidisation policies. The subscriber base of mobile phones in India reached 165.09 million in 2006-07. From April to December 2007, new mobile subscribers increased by 67.54 million, about 11 times more than the total mobile subscribers India had in 2001-02 (6.54 million).
PMO stamps out DoP move to regulate courier charges
The Times of India, Friday, April 4, 2008
Inflation, a dreaded word for the economy today, may turn out to be a boon for the courier industry. The PMO has raised objections to Department of Post’s (DoP) proposal to regulate and set tariffs for courier services by which such firms would need to charge at least five times higher tariff for normal mails when compared to posts. This, the PMO has said, would be inflationary in nature and so should be avoided. The matter is set to be taken up by the Cabinet soon.
No Cabinet approval for Greenfield airports within 150 km radius
Business Standard, Sunday, April 6, 2008
Cabinet approval for Greenfield airports within the 150 km radius of an existing airport is being done away with, according to the new Greenfield airports policy, which has recently been sent for Cabinet consideration by the civil aviation ministry. This would have serious implications for airports in large metro cities including Bangalore, Kolkata, Hyderabad and Chennai, where a second airport will eventually be a reality.
New telecom licences ring in acute talent crunch
Business Standard, Sunday, April 07, 2008
The shortage of spectrum, the radio frequency that enables wireless communications, is not the only issue worrying the telecom industry. With the government issuing 120 more licences to over 10 players that are expected to roll out their networks soon, telecom companies fear a major talent crunch over the next 12 to 18 months. Telecom HRD analysts said attrition rates across levels is expected to go up to 25 per cent from 18 to 20 per cent.
Competition panel seeks more teeth to help tame inflation
Financial Express, Tuesday, April 08, 2008
At a time when the Centre is desperately exploring legal provisions to crack down on hoarding and cartelisation—an effort to curb inflation – the Competition Commission of India (CCI), the regulator to punish those indulge in anti-competitive activities, has said if it had been fully functional it could have helped in preventing instances of unreasonable rise in prices of commodities. However, the Competition Act and CCI are yet to be fully functional. Recently, industry bodies such as FICCI and CII had opposed some provisions in the Act, including on mergers and acquisitions. Besides, it is still uncertain whether the CCI will be operationalised by year-end as recruitment of members is yet to be completed.
Well-laid norms sought for new airport policy
Financial Express, Saturday, April 12, 2008
In a bid to avoid future situations like in Greater Noida, the ministry of civil aviation has moved a Cabinet note on Greenfield airports policy with explicit guidelines for approval of airport projects, including those within and outside the 150-km mark. The new policy aims at making it easier to set up an airport in the country
Industry keenly awaits next gas price hearing
Business Standard, Sunday, April 13, 2008
April 29 will be an important day for the country’s gas economy. On that day, the Bombay High Court will start hearing the case between the warring companies, Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL), to reach a quick decision on who will get access to the huge volumes of gas to be produced from RIL’s block in the Krishna-Godavari basin.
Centre to act tough on cartelisation in steel: Kamal Nath
The Hindu, Sunday, April 13, 2008
The Central Government on Saturday held out a stern warning to steel producers and freight operators that it will come down heavily to prevent cartelisation by them. It has expressed the hope that Competition Commission of India (CCI), which is to become operational soon, will help stop these malpractices.
Building contractors say Govt formula for price escalation inadequate
The Business Line, Monday, April 14, 2008
The Government’s formula for price escalation in public construction contracts fails to cover the full impact of recent escalation in the cost of construction steel, say contractors executing civil public works. This is also likely to hamper execution of government and quasi-government rate contracts for construction work. In particular, it may also prove a dampener for the preparations for the 2010 Commonwealth Games, sources here caution.
Managing steel prices down without outright controls
Financial Express, Monday, April 14, 2008
Steel seems to have gained more importance than it deserves in the context of rising inflation in the country. There is no doubt that not the entire price rise is related to production costs. The steel industry has rightfully exploited the opportunities in the market. If the government has to act to create conditions for lower steel prices, it can do so using the instruments it has at its disposal and especially those which can be used without excessive administrative hassles or side effects. Some of them may be considered against the goodness of the free play of the market but can be accepted as a short-term measure. Bringing back controls on prices or a wholesale ban on exports are not among those recommended.
Trai inquiry into Virgin affair unfair: Tata Tele
Business Standard, Monday, April 14, 2008
Tata Teleservices Ltd (TTSL) has lashed out at the Telecom Regulatory Authority of India (Trai) for instituting an inquiry into a deal between the Telecom Company and Virgin Mobile based on press reports, terming the action unfair. “May we request that the inquiry of the nature instituted by Trai at the behest of press reports is not in fairness of things,” TTSL said in a letter replying point by point to the queries raised by the regulator.
‘Govt’s inflation policies likely to backfire’
Financial Express, Tuesday, April 15, 2008
Few price control policies taken by the governments, including India, are likely to backfire by making the international market smaller and more volatile, a think-tank of International Food Policy Research Institute (IFPRI) has said. “Price controls and changes in the import and export policies may begin to address the problems of poor consumers who find that they can no longer afford an adequate diet for a healthy life. But some of these policies are likely to backfire by making the international market smaller and more volatile,” said an IFPRI report titled ‘Rising Food Prices: What should be done?’
CCI to avoid overlapping with other regulators: Govt
The Economic Times, Tuesday, April 15, 2008
The government on Tuesday said the Competition Commission of India (CCI) would consult other sector specific regulators to avoid overlapping of functions. Minister for Corporate Affairs P C Gupta said in Rajya Sabha in a written reply that in case of overlapping the CCI would “make a reference to the other regulator for its opinion which would have to be indicated by the regulator in a time- bound manner”.
Cement, steel firms acting like cartels: FM
Financial Express, Thursday, April 16, 2008
Finance Minister P Chidambaram warned he would take “tough measures” against cement and steel Companies for “behaving like cartels” to raise prices. The minister also said the government was planning another round of duty cuts and a possible interest rate hike to get prices down in the Economy. Intervening in the debate on price rise in Parliament on Wednesday, the minister said, “If their behaviour does not change, government will not hesitate to take tough measures.”
Railways open gate for private players in wagon biz
Financial Express, Thursday, April 17, 2008
In a move that will end the monopoly of its public sector enterprise, the railway ministry has unveiled two big bucks schemes for wagon procurement by private Companies. The ministry has now launched the wagon leasing scheme (WLS) and the liberalised wagon investment scheme (LWIS) that will permit private Companies to own and lease wagons, so far the mandate of the Indian Railway Finance Corporation.
No evidence of cartelisation but govt monitoring steel prices
Financial Express, Friday, April 18, 2008
Noting that it has no evidence regarding cartelisation in the steel industry, the Centre on Thursday said it was “closely monitoring the movement in steel prices and will take appropriate fiscal measures if necessary.” Pointing out that the steel sector in the country is deregulated and therefore the prices are determined by the interplay of market forces, minister of state for steel Jitin Prasada said in a written reply to a query in the Lok Sabha that “at present the government has no formal proposal for setting up of a regulatory authority to contain the steel prices in the country.”
Tyre & steel cos face probe for cartel bid
The Economic Times, Friday, April 18, 2008
Taking its fight against inflation forward, the government has asked the fair trade regulator MRTP Commission to probe into suspected cartel-like behaviour among major tyre and steel makers. The investigation wing of the quasi judicial body on Wednesday issued notices to five major tyre makers and is preparing to issue notices to steel companies as early as next week.
Steel Ministry says no sign of cartelisation
Financial Express, Friday, April 18, 2008
Did the Government go overboard in accusing the steel industry of functioning like a cartel? A day after the Finance Minister, Mr P. Chidambaram, told the Lok Sabha that there were signs that steel manufacturers were behaving like a cartel, another Minister informed the same House on Thursday that the Steel Ministry was not aware of any cartelisation in this industry.
‘Operators don’t need rural subsidy anymore, so why USO fund’
Financial Express, Saturday, April 19, 2008
Urging the government to phase out the Universal Service Obligation (USO) charge, telecom operators at an FE round table conference on Bridging the Connectivity Divide emphasised that a corpus of almost Rs 14,000 crore was lying unused with the government. However, Telecom Regulatory Authority of India chairman Nipendra Misra disagreed saying the 5% charge on the adjusted gross revenue (AGR) of the operators was much needed and was being utilised. However, Misra added that the funds could indeed be used for subsidising PCs in the hinterland.
Realty players accuse steel, cement cos of ‘cartelisation’
The Economic Times, Sunday, April 20, 2008
The real estate industry today lashed out at steel and cement companies accusing them of ‘cartelisation’, and said that steep hike in cement and steel prices had pushed up the construction costs by Rs 225 per sq ft, in the last one year. “There is definitely a cartelisation in cement and steel industry,” the National Real Estate Development Council (NAREDCO) Senior Vice-President, Mr Pradeep Jain, said responding to a specific query.
UP govt plans regulator for transport sector
Business Standard, Monday, April 21, 2008
A regulatory commission, on the lines of the power and telecom regulatory bodies, is on the anvil in Uttar Pradesh for the transport sector. The UP government has taken an in-principle decision to set up the UP Transport Regulatory Commission (UPTRC) regulatory body. The commission will be created by an act of the assembly and draft legislation is likely to be placed before the cabinet for final approval soon.
Fixed-line licence fee waived
Financial Express, Saturday, April 25, 2008
The government has decided to exempt Companies offering fixed-line telephone services from the license fee, which is paid on the adjusted gross revenue (AGR), minister of Telecommunication & IT A Raja said on Friday. The decision is expected to cost the exchequer over Rs 2,000 crore. “I have already asked the telecom commission to deliberate on the issue to exempt fixed-line telephony from the licence fee,” Raja said.
‘Hike cap on foreign investment in cable TV network, news channels’
The Business Line, Sunday, April 26, 2008
Terming the Information and Broadcasting Ministry’s reasoning for keeping the foreign investments (FI) limits in the cable TV network at 49 per cent as over-cautious, the Telecom Regulatory Authority of India (TRAI) on Saturday recommended that it be raised to 74 per cent. The regulator is also in favour of allowing the FI limit for news and current affairs channels to be raised from the current 26 per cent to 49 per cent.
Lock-in period only for telecom cos’ mergers: DoT
The Business Line, Sunday, April 27, 2008
In a breather to new telecom players, the Department of Telecom has said that there is no bar on acquisition of companies which have recently acquired licences. The three-year lock-in period, mentioned in the new guidelines, will only be applicable in the case of mergers. This means that companies including Datacom (owned by Videocon), Unitech and BPL will be allowed to offload up to 74 per cent equity to foreign companies as per the existing FDI norms or 100 per cent stake to any non-telecom Indian companies.
Most states yet to formulate plan for rural electrification
Financial Express, Monday, April 28, 2008
Majority of the states have not yet formulated the plan for implementation of the Centre’s ambitious rural electrification programme, Government said on Monday. Replying to questions in Rajya Sabha, Minister for Power Sushilkumar Shinde said the Centre has impressed upon the states the need for according priority to implementation of the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY).
Changes likely in depreciation norms for infrastructure projects
The Business Line, Wednesday, April 30, 2008
To make infrastructure projects more attractive for companies and investors, the Ministry of Corporate Affairs (MCA) is re-examining the existing depreciation policy for such entities. Though industry would prefer a higher rate of depreciation for BOOT (build, own, operate, transfer) projects, in the absence of any guidelines, the Ministry plans to ask the Institute of Chartered Accountants of India to look into the issue, official sources said.